News
ULI'S MULTIFAMILY IN THE MORNING
April 5, 2011
| This morning at ULI's multifamily summit at the BWI Marriott, we learned Bozzuto Managment is expanding to the Boston market. And with yesterday's warm weather putting pools on our mind, we appreciated this: amentities are the new key to successful apartment development. |
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| Bozzuto's Nancy Goldsmith, whom we snapped this morning says customers prefer small units with high-end finishes over big floorplans, although big units are still viable in the 'burbs. In the city, she sees one-bedroom and studio apartments generating the mostdemand. Why? Young people are moving out of their parents' basements and older folks are sick of mowing lawns. Those same tenants also want to get to know their neighbors, so Nancy sayscommon areas need to be flexible for community uses. |
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| Kettler's John Chappelear says amenities might not always translate into rent growth, but they do bump renewal rates. What makes the extras a must? John says the "hangover" from the luxury condo market's surge before the recession raised tenantexpectations. |
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| Harkins Builders' Larry Kraemer says price is driving a trend towardstick-built construction, which he tells us can save up to $15/SF on building costs. He also thinks we haven't seen BRAC's full impacton the apartment market yet, predicting it'll take several years. |
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| Hord Coplan Macht Architects principal Ed Hord says he's seeing lots of builders focus on "podium" buildings, which feature a concrete foundation below stick-built units (it can yield up to 70 units/acre, he says). Opportunity lies in the seniors housing market, Ed tells us, thanks to an exploding 65-and-over population. (Of course, with no lawns to mow, that also means no yelling at neighborhood kids to get off it.) |
